A Contract for Difference (CFD) is an agreement made between the buyer and the seller of a specified asset. This agreement states that the seller will pay the buyer the difference in price between the asset’s value at the time the agreement was made and the asset’s value at present.
CFD trading is one of the most popular options for traders because you’re trading on price movements of an asset, without actually having to buy it.
CFDs offers you easier access to the commodities markets. As a result, trading on the price movements of heavily-traded assets, provides you with flexible trading opportunities that have great potential to boost your investment portfolio.
With FXTM, you can choose to trade the following three CFD commodities:
Trading CFDs on Commodities costs far less than trading the underlying asset directly, while still offering the same probability for higher gains. If a trader goes long with a CFD, when the commodity appreciates in value, they could potentially make a bigger profit than someone who owns the physical asset. This cuts both ways, though, as this same trader could incur a greater loss if the price of the commodity drops.
Traders find CFDs attractive because they offer an economical way of participating in the financial markets. With leverage, traders invest a smaller portion of their own capital when entering into the agreement, which opens the doors for potentially bigger returns. That said, it’s important to remember that leverage carries the same potential to increase losses as it does to boost profits.
Our CFD commodities are tradable with both instant and market execution, guaranteeing you fast and efficient trading.